Dubai Commercial Real Estate .. The market is in the interest of the owners and the demand exceeds the supply

Aqaris said that the commercial real estate market in Dubai is witnessing a strong demand on the one hand, and a clear shortage of supply on the other hand, with the support of the flow of multinational companies to the emirate, which enhances the attractiveness of investment.

They assured «Emirates Today» that the market is still in the interest of the owners, with the expectation that a large large stock does not enter before 2026-2027, at a time when commercial rental revenues increased by more than 22%, as a result of the increasing demand and the scarcity of supply.

They explained that the commercial real estate market in Dubai is witnessing exceptional conditions, driven by the scarcity of supply and demand, as the prices of the distinctive offices rental increased to 359 dirhams for the square annually, with a growth of 17.3%annually, while the category (A) offices recorded a growth of 19.5%, and the category (B) 16%.

They emphasized that multinational companies represent a main motivated force for the growth of the commercial real estate market in Dubai, as their expansion and attracting competencies contribute to creating a strong demand for office space.

They revealed the registration of the offices sector the largest boom, with 83 offices of offices to exceed the value of the deal exceeding 10 million dirhams, in the first half of 2025, compared to 27 transactions in the same period last year, while the Dubai International Financial Center is still the most competitive market.

They also pointed to the Federation Train Project, and the gradual transfer to Al Maktoum International Airport, which began to affect the directions of investors and tenants, with the high prices of land and rents in the region, and described the “Expo Dubai” as the “next treasure” for the commercial and logistical sector and exhibition And the huge projects established there.

Attractive factors

In detail, the Director of the Research Department at the “JLL” company, the Middle East and North Africa, said, “Farraz Ahmed, the commercial real estate market in Dubai is witnessing exceptional conditions, driven by the scarcity of supply and the power of demand,” noting that the vacancies rate in the offices sector during the second quarter of this year is only 7.7%, compared to 11.1% in the same period last year.

He added to «Emirates Today»: “Distinguished offices recorded a very low vacancy rate at 0.3%.” He attributed the decline in rental contracts by 19.1%during the second quarter of 2025, to the lack of supply more than twice the demand, with the increase of contracts by 8.3%.

He continued: «The real estate rents continued their rise, as the prices of the distinctive offices rental increased to 359 dirhams for the square foot annually, with a growth of 17.3%annually, while the category offices (A) recorded a growth of 19.5%, and the category (B) 16%, which reflects a gap between supply and demand, and gives the owners a clear negotiating power.

He emphasized that “the offices sector, especially the distinctive and category (A) shows exceptional performance with a decrease in vacancy rates to 0.3% and 3.5%, respectively,” indicating noticeable growth in alternative assets categories, such as data centers and logistical facilities, driven by adopting artificial intelligence techniques and digital transformation.

Ahmed pointed out that there are several indicators showing Dubai’s attractiveness to investors in the commercial sector, most notably the low vacancies rates, strong rental growth, in addition to the established economic foundations, and positive expectations for the growth of local product.

He noted that the market is witnessing a shift towards the institutional nature, with record activity in the capital markets during the year 2024, as well as the high quality of life that attracts global competencies, and supports the continuation of demand.

He said: «This accelerated growth in the commercial real estate sector supports the emirate’s position globally, especially with the remarkable diversity in the groups of investors, from traditional institutions to private royal boxes, sovereign wealth funds and family offices that want to join the story of Dubai growth and its progress.

Advanced investments

Ahmed emphasized that the advanced investments in infrastructure and sustainable urban planning have strengthened the attractiveness of Dubai, whether in terms of rental revenues or capital estimation, indicating that the development of technical centers contributes to stimulating real estate growth in multiple sectors, including housing, offices, industry, hotels and retail, in order to absorb the demand resulting from expansion in the qualified workforce.

He stressed that digital innovations, especially the requirements of artificial intelligence and data centers, reshape the demand patterns in the real estate market, noting that the spread of 5G networks, and the adoption of smart city technologies pushing towards enhancing the demand for specialized infrastructure, with the emergence of high -huge databases a major element in development strategies.

Interest

Ahmed said that the current circumstances suggest that the market remains in the interest of the owners in the short term, especially in the distinctive sectors and category A, in light of the lack of expectation of a large new stock before 2026-2027, which is estimated at 264 thousand square meters of rental spaces.

He emphasized that the long -term growth factors are still positive, driven by sustainability, adherence to environmental standards, society and governance, and increasing interest in alternative assets, pointing out that multinational companies represent a main motivated force for the growth of the commercial real estate market in Dubai, where their expansion and attracting competencies contribute to creating a strong demand for office space.

He pointed out that economic diversification and institutional expansion strategies gave the owners a noticeable negotiating power, amid strong competition for the distinctive spaces, explaining that startups tend more to alternative work spaces, thanks to their flexibility and efficiency, in terms of cost, while multinational companies continue to prefer traditional offices.

He stated that this diversity in preferences pushes the owners towards moving away from the traditional models in the design of spaces, and adopting flexible and open designs that keep pace with the changing needs of the tenants.

Request and display

For his part, the partner and director of the commercial agency at the global company «Knight Frank» Real Estate Consulting, Adam Win, said, “Dubai Commercial Market for 2025 started from a strong site, benefiting from the momentum extending from last year,” noting that the demand for distinctive office spaces is still exceeding the supply, with a noticeable decrease in vacancies in vital areas, such as the Dubai World Financial Center and Sheikh Zayed Street.

He stressed that “the retail sector continues its stability supported by several factors, including tourism, high consumer spending, and expanding entertainment and lifestyle that keeps the lively shopping centers,” explaining that the increasing population growth raises demand across various sectors.

He said: “The offices sector recorded the largest boom, with 83 offices for offices, the value of the deal exceed 10 million dirhams, in the first half of 2025, compared to 27 transactions in the same period last year.

Wayne stressed that “the Dubai International Financial Center is still the most competitive market, as the rents of the equipped offices exceeded the 400 -dirham barrier for the square foot, with occupancy rates of about 100%”, pointing out that Dubai’s attractive indicators for commercial investors are manifested in the strength of the economy, the development of the real estate market, with the increase in the number of new companies and the expansion of the work of the existing companies at a growing pace.

He also pointed out that the rate of occupancy of the offices of the first degree touches 100%, while the industrial sector recorded a occupancy rate of 97%, noting that industrial rents witnessed an increase of 33%during the past year.

Win attributed the decline in rental revenues during the past 12 to 18 months, to the limited supply of distinguished assets and the increase in the flowing capital, explaining that the revenues of the logistics sector are still higher than others, such as offices, hospitality, and alternative sectors such as education and health care, given the nature of long -term rental contracts.

He continued: «There is an increasing interest from investors not only in terms of the size of the flowing capital, but also in terms of their diversity.” He pointed out that there are investors from Europe, Asia and North America, and each of them has its sectoral preferences.

He emphasized that logistical assets remain a major attraction for institutional capital, thanks to the simplicity of their management and high demand, indicating that major projects and infrastructure are strengthening demand.

Wayne praised the “Al -Ittihad train” project, saying that it increased the attractiveness of the sites close to the freight centers and raised the efficiency of supply chains at the state level.

He said: «The gradual transfer to Al Maktoum International Airport has begun to affect the directions of investors and tenants, with the high prices of land and rents in the region, where many regions are developing with the entry of new international companies and focusing on the logistics and creative business and retail sectors.

He expected the demand to remain strong on the offices, retail and logistical sectors during the next three years, with the continued occupancy of the distinctive spaces, and the rental of any new display immediately, suggesting the growth of rents, especially in the industrial and logistical sectors and the offices of the first degree that are still rare.

He emphasized that the major international companies play a pivotal role in advancing Dubai’s commercial growth, as banks, consulting companies and legal offices represent the basic pillar of demand at the Dubai International Financial Center, while the major retail and distribution companies run major logistical facilities from Dubai, pointing out that the presence of these entities enhances confidence, establishes quality standards, attracts supply chains, which makes them a driver And a guarantee of Dubai commercial prosperity.

Amazing request

In the same context, Muhannad Al -Wadia, CEO of Harbor Real Estate, said: “The commercial market in Dubai continues its strong performance during the last months of 2025, with a high request to be registered with a scarcity of supply.

Al -Wadia added: “The shops sector is witnessing a gradual improvement, but it does not keep pace with the pace of growth in the offices,” noting that the opening of a number of new shopping centers (malls) and community centers soon, such as “Expo Mall” in the Dubai South region, and other areas such as Al -Khawaneej, will contribute to moving commercial activity, according to the expansion and needs of societies.

Al -Wadia pointed to the implementation of the corporate tax by 9%, which companies began to take into account when taking decisions related to purchase, rental, or expansion, stressing that this tax, despite its direct impact, is considered a supportive step for the national economy in the long run, and is enhanced by the stable business environment.

He pointed out that the offices sector is currently the highest, driven by a large demand from service companies in fields, such as real estate, consulting, and financial services, indicating that the areas most attractive to this type of demand include: Dubai International Financial Center, the Commercial Gulf, and Dubai Hills, along with “Al Barsha Hitz – Tecom”.

Al -Wadia highlighted the “Expo Dubai” city, describing it as the “next treasure” for the commercial, logistical and exhibition sector, and expected to become one of the most prominent commercial areas by the end of this year and during the year 2026, given the strong infrastructure and huge projects established there.

He added that the market is currently witnessing a noticeable increase in the demand for offices, pointing to a large turning point represented in allowing offices and shops in Sheikh Zayed Road and Al -Jadaf area.

Rental revenues

In turn, the founder of “Reel Al Qubaisi Real Estate”, Maryam Al -Qubaisi, told “Emirates Today” that “the commercial real estate market in Dubai is witnessing strong momentum, with a remarkable increase in demand for offices and commercial stores, especially in vital areas, such as the Dubai World Financial Center and the Commercial Gulf, which reflects the growth of the emirate’s growing emirate for regional and international investors.”

She pointed out that the major projects, such as the blue “metro line”, contributed to enhancing interest in the surrounding areas, thanks to the improvement of the infrastructure and the growth of economic sectors, as well as encouraging government policies, such as allowing full foreign ownership and the gold residence program, which directly contributed to stimulating the establishment of companies and expanding their business.

She confirmed that the rental revenues in the commercial sector increased by more than 22%, as a result of the increasing demand and the scarcity of supply, at a time when the occupancy rates of the existing offices reached more than 92%, which reflects the strength of the market and the confidence of the investors.

She explained that the tourism sector in Dubai had a major impact on promoting commercial activity, with more than 11 million visitors registered until the middle of this year, which led to a clear increase in the demand for shops and hotels, and created a direct relationship between the tourism movement and the growth of the real estate sector.

She pointed out that the “flexible offices” has become the first choice for many international companies, especially those looking for modern solutions of high quality and operational flexibility, in harmony with Dubai’s tendencies towards sustainability and innovation, especially in the central business areas.

She concluded by saying: “The opportunities in Dubai are not only immediate, but also a gateway to a stable and growing real estate investment future,” calling on investors to diversify their real estate portfolios by focusing on modern offices and major commercial projects, because of the strong growth capabilities they carry in the long run.

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69.19 billion dirhams commercial sales in 8 months

A statistic, prepared by the “Prubrey Fender” real estate platform for “Emirates Today”, revealed the growth of the value of commercial real estate transactions in Dubai, during the first eight months of this year, by 72% on an annual basis.

In the aforementioned period, commercial real estate sales recorded about 69.19 billion dirhams, compared to 40.28 billion dirhams during the same period last year 2024.

The statistics statistics said that the commercial real estate market in Dubai is turning into a low -sized market, attractive to institutional investors and companies with future visions.

• The average vacancies in the offices sector, during the second quarter of 2025, is only 7.7%.

• The offices sector, especially the distinctive and category “A”, shows exceptionally performance with a decrease in vacancy rates to 0.3% and 3.5%, respectively.

• The completion of 83 offices for offices, each of which exceeds 10 million dirhams, during the first half of 2025.

• The average occupancy rate of the first -class office touches 100%, and the industrial sector records the occupancy rate with an average of 97%.

• 5000 dirhams for the square foot, the average prices of the city center offices, and the prices of the “Bay Al -Suhair” area exceeded 2000 dirhams for the square foot, for the first time.

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